MGX Minerals Announces Closing of Final Tranche of $12.9M
Private Placement of Flow Through and Non Flow Through Units
VANCOUVER, BRITISH COLUMBIA / December 28, 2017 / MGX Minerals Inc.
("MGX" or the "Company") -- InvestorsHub NewsWire -- (CSE: XMG / FKT: 1MG / OTC: MGXMF) is pleased to announce
that it has closed the second and final tranche of a non-brokered,
private placement for 2,434,716 flow through units ("FT Units") at
a price of $1.05 per FT Unit for gross proceeds of $2,556,451.80
(the "Offering"). The aggregate gross proceeds raised under the
Offering was $5,803,253.40 through the issuance of an aggregate of
5,526,908 FT Units. The FT Offering was made concurrently with a
private placement of non flow through units ("NFT Units"), which
raised aggregate gross proceeds of $7,137,000 (see press release
dated December 21, 2017).
Each FT Unit is comprised of one Common Share issued on a
flow-through basis pursuant to the Income Tax Act (Canada) and
one-half of one Common Share purchase warrant (each whole warrant,
a "FT Warrant"). Each FT Warrant will entitle the holder to acquire
one additional Common Share, on a non-flow through basis, for a
period of 36 months at a price of $1.15.
The FT Unit proceeds will be used for qualified mineral
exploration expenses on the Company's projects in Canada.
In connection with the private placements for NFT Units and FT
Units, the Company paid a finder's fee to EMD Financial Inc.
("EMD") equal to a cash payment of 8% of the gross proceeds raised
from purchasers of the NFT and FT Units introduced to the Company
by EMD, common shares of the Company equal to 4% of the total
number of NFT and FT Units sold to purchasers introduced by EMD,
and non-transferable warrants equal to 4% of the total number of
NFT and FT Units sold to purchasers introduced by EMD (the "Finder
Warrants"). Each Finder Warrant entitles the holder to purchase one
common share at a price of CA$1.15 for a period of 36 months
following the closing date. In connection with the NFT and FT Unit
financings, EMD received a total of $722,740.27 in commission,
439,556 finder's shares and 439,556 Finder's Warrants. EMD also
received a corporate finance fee of $50,000.
The securities issued pursuant to the Offering and the other
above matters are subject to a hold period of four months and one
day.
About MGX Minerals
MGX Minerals is a diversified Canadian resource company with
interests in petrolithium, magnesium and silicon assets throughout
North America. Learn more at www.mgxminerals.com.
Contact Information
Jared Lazerson
President and CEO
Telephone: 1.604.681.7735
Web: www.mgxminerals.com
Neither the Canadian Securities Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Canadian Securities Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains forward-looking information or
forward-looking statements including the completion of the rights
offering (collectively "forward-looking information") within the
meaning of applicable securities laws. Forward-looking information
is typically identified by words such as: "believe", "expect",
"anticipate", "intend", "estimate", "potentially" and similar
expressions, or are those, which, by their nature, refer to future
events. The Company cautions investors that any forward-looking
information provided by the Company is not a guarantee of future
results or performance, and that actual results may differ
materially from those in forward-looking information as a result of
various factors. The reader is referred to the Company's public
filings for a more complete discussion of such risk factors and
their potential effects which may be accessed through the Company's
profile on SEDAR at www.sedar.com.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the United
States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States unless registered under
the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.